| According to the new data of China Steel Association, the average daily output of crude steel of key steel enterprises in the middle of May was 2.038 million tons, a decrease of 7800 tons compared with the previous ten days, with a month on month decrease of 0.38%. By the end of mid May, the steel inventory of key steel enterprises was 12.683 million tons, an increase of 225000 tons compared with the end of last ten days, with a month on month increase of 1.81%.
At the same time, in May, trade friction between China and the United States escalated, and the domestic and foreign markets were facing uncertainties. The United States announced that the tariff on US $200 billion of Chinese goods exported to the United States was increased from 10% to 25%. Among them, more than 70% are intermediate products and investment products, including steel products. Domestic export enterprises or precision seamless steel pipe steel demand enterprises will inevitably be affected, which is equivalent to that they will weaken some demand, which will certainly have a certain impact on our domestic sales market. Since June, many southern regions have entered the Meiyu season, Rainfall will seriously affect the development of construction projects, and then affect the demand for building steel, and the downstream demand for steel will be weakened. At the same time, the steel output will still release at a high level, which will increase the market supply pressure, and the social stock of steel will also show a slowing down or even rising trend. It is expected that the price fluctuation of precision seamless steel pipe will be weak in June.